is it true that there is two different types of major services that need to be done at different intervals on the E36. If so, what all does it cost to do the things that are required, and do you have to have the dealer turn off the service light if there is one?

Yes, there are two different major service intervals that can be done by the dealer$hip at a significant cost. If I remember correctly, it might have been $300-$400 US for the 2nd inspection, I'm not entirely positive but I know it was a high price. The 1st inspection is significantly cheaper, but they definitely don’t check as many things (no need to at that low mileage).
If your talking about those green and red "inspection" and "oil service" bars on the instrument cluster, No. you do not have to have a dealer reset those. You can either buy a tool, or use a coat hanger or paperclip method where you short a specific pin on the communications port and turn the ignition on for a specified amount of time. Totally free and works 100%. (I did it myself, and this method is the SAME thing that the 70-100$ tool does)
I'll dig up the tutorials on how to do that in a little while. It takes less than 2-3 minutes to open the hood, figure it out, and be completed with the entire process.

You should go to the dealer or a good mechanic to reset the check engine light though.

If you don’t want to pay for the expensive inspection like I didn't want to, just take a look at the common E36 failures list somewhere in this forum, I'll dig up a link in a while, once again. Off the top of my head: rear shock mounts, RTABs (rear trailing arm bushing), and the LCA's (lower control arm bushings).
Bushings should be replaced with M3 parts, rear shock mounts would be best to replace with E46 convertible mounts (beefier than stock E36 and essentially same part). Each part should be under about 35$, and you need one for each side. (6 parts total) I did my front bushings and it's a WORLD better. Waiting for time to replace my RTABs and shock mounts.

thanks for the help... i just got back from FAQ and read some really well illustrated tutorial on how to reset the oil light and inspection light. I think when i get the car I'll print the complete inspection list from that page on FAQ and tell my trustworthy mechanic to get to work!

This is off the topic here, but this forum is awesome! The members seem very knowledgable and the actually post, unlike hotbimmer.net

thanks, will do. I've been in love with BMW's for about 6 years (since i was 11). The ironic thing is that my best friend loves rice crap, and i can't stand it. Well his parents bought him a '95 M3, and i get a fu$king Mazda 626! OOOO the irony!

Originally posted by schulman@Jun 15 2004, 05:01 PM Well his parents bought him a '95 M3, and i get a fu$king Mazda 626! OOOO the irony!

I'd kill myself, I wouldn't be able to stand that situation. Maybe his parrents wanted to convert him from the ignorant cult of rice to quality, beautiful german engineering...
I'm sure all of the old members (not in age, how long they've been here) will agree with me saying that they hate rice with a passion, as do I.

yea, I do the best with what I can, my car gets the job done, at least it's a V6 with a 5 speed, in great shape. I just hate it when civics think that I'm interested in wasting my time by kicking their ass in a race!

o yeah! I'll have to sell that plus the money i'm saving to even afford the car. It's gonna be a pain in the ass though, because i'm going into my senior year in high school, but i won't be able to enjoy it being that I have to go full time at work just to afford the bimmer... it will be worth it in one year, I hope!

This is going to turn into an arguement, but I don't care. Lemmie start by saying, I hate the people who drive little civics with a loud ass muffler and some underglow. But I bow to a B18 CRX, S13,14 silvias, 3000gt VR4s. Just to name a few. Any of those cars can be ricey, but so can a BMW. If somebody puts time and money into a car they like to make it handle better and be more fun to drive, more power to that person.

I'm not a fan of the big wings and vinyle either, but I can't hate on anyone. It's just not the way I am. To each his own...